BOE Preview – Awaiting Updates on Negative Rate Policy and Economic Projections
There are several things to watch for this week’s BOE meeting: 1) updates on the review of negative interest rate; 2) adjustment to QE; 3) economic projections. All policy measures will stay unchanged this week with the Bank rate unchanged...
RBA to Leave Policy Unchanged and Remain Cautious about Outlook Despite Recovery
The RBA will have its first meeting this year on Tuesday, followed by publication of the statement of monetary policy on Thursday. We expect all policy measures to stay unchanged this month. Policymakers could revise GDP forecast higher and the...
Fed Indicated that QE Tapering is Premature and Bar to Adjust Policy is High
The December FOMC meeting contained little news. However, Chair Powell sent a clear indication that tapering is “premature” for the time being and that the bar to adjust the monetary policy is higher. The Fed left all measures unchanged at...
FOMC Preview – Cautious about Economic Weakness but Fiscal Stimulus should lend Support
The FOMC meeting in the coming week will not bring any change in the monetary policy. Economic activities have moderated since the December meeting, while resurgence in the coronavirus cases could hurt economic activities more seriously than previously expected. Yet,...
ECB Gets Slightly More Hawkish, Revealing that it might Not Use All of PEPP Envelope
The ECB left its powder dry in January. While continuing to warn of the downside risks on the Eurozone and global economy, the central bank delivered a hawkish tweak about operation of the Pandemic Emergency Purchase Program (PEPP). On the...
BOJ Downgraded Economic Outlook for FY2020, Inflation to Fare Better During Forecasting Horizon
The January BOJ is non-eventful. Cautioning that risks to the economic outlook is tilted to the downside, the central bank announced to leave all its stimulus measures unchanged. In contrast to speculations, the central bank did not adjust the implicit...
ECB Preview – Awaiting More Comments of Strong Euro
While ECB would likely leave its monetary policy measures unchanged this week, the market should focus on several issues: members’ view on recent euro strength, discussions on QE tapering and economic impacts of renewed lockdown. Following the recalibration in December,...
BOC Preview – All Eyes on Likelihood of Micro Rate Cut
BOC is widely expected to leave its overnight rate at the effective lower bound of 0.25% in January. The size of asset purchases will also stay unchanged at CAD4B/week. Over the past month, there has been market speculations about the...
BOE Stays Put as Deadline of Brexit Talk Approaches
BOE left the Bank rate unchanged at 0.1% and the asset purchase program at 875B pound. The central bank remained cautious about the “unusually uncertain” economic outlook and pledged to take “whatever additional action is necessary” if the outlook for...
Fed Pledged to Continue QE Until “Substantial Progress” Seen in Employment and Inflation
The major changes in the December were forward guidance in the asset purchase program (QE) as well as upgrades in economic forecasts. The Fed left the policy rate unchanged at 0-0.25% and asset purchases at US$120B per month. The updated...